At a time when climate shocks are no longer distant forecasts but lived realities, the urgency to rethink agriculture has never been greater. From unpredictable rains to prolonged droughts, the pressure on food systems is mounting, and with it, the need for a response that is climate-smart, investment-driven, and globally competitive.
During the Kenya International Investment Conference 2026, stakeholders from government, private sector, development partners and global investors came together at a high-level side event under the theme; Scaling Climate-Smart Agriculture for a Sustainable Future.
Opening remarks delivered on behalf of the Cabinet Secretary for Agriculture, Hon. Mutahi Kagwe captured this reality. He noted that agriculture is not simply one sector among many, but the foundation upon which Kenya’s economy rests, contributing 25% of GDP directly, and supporting the livelihoods of more than 70 per cent of the population. Yet this same sector is increasingly exposed to climate pressures which are steadily reshaping the country’s agricultural landscape. Climate-smart agriculture, is no longer an enhancement, but the framework upon which Kenya’s future must be built.
It is within this context that the panel discussion unfolded, bringing together voices from government, private sector, finance, trade and global partnerships. What emerged was a narrative about transformation that should be anchored in investment, innovation and collaboration. Central to this conversation, was the role of the Netherlands in Kenya’s agricultural journey.
Yvonne Oerlemans, General Manager of the Netherlands Business Hub, a privately owned, not-for-profit membership organisation that supports Dutch companies entering and operating in Kenya while promoting bilateral trade represented the Dutch Government and their contribution to Kenya’s agriculture sector. The Netherlands’ presence came through both in numbers and impact. Speaking to the evolving relationship, Yvonne reflected on how the Netherlands has grown from being a trading partner into a trusted, long-term strategic partner in Kenya’s agricultural journey. Today, with over 90 Dutch companies active in the country across horticulture, logistics, water management and agritech, that partnership is visible. Kenya’s success as a leading exporter of flowers and fresh produce to European markets is deeply connected to Dutch expertise, from cold chain logistics to efficient market systems and global distribution networks.
The long-term orientation approach of Dutch Partnership with Kenya, stands out. Dutch investment in Kenya is structured, systems-driven and embedded within the agricultural ecosystem. From investments in modern animal feed production to advancements in storage, water efficiency and supply chain infrastructure, the Netherlands is contributing towards building resilience. The establishment of an ultra-modern animal feed manufacturing plant by De Heus, worth over Ksh 3 Billion, for instance, is already stimulating upstream demand for maize and soy, creating new opportunities for local farmers while strengthening Kenya’s livestock value chains. Looking ahead, this partnership points towards deeper integration where innovation, sustainability and value addition become central pillars. In addition to Yvonne’s presentation, the Embassy had the opportunity to showcase, through an exhibition, Dutch companies that are already creating impact in the Kenya market. For instance, Holland GreenTech is supporting vegetable farmers with improved seeds, greenhouse technologies, irrigation systems, and agronomic expertise to grow more with fewer resources. At the same time, Tunga Nutrition, in partnership with Nutreco, is scaling sustainable fish-feed production, while Bio Food Products is strengthening climate-smart dairy systems through farmer training and cold-chain development. Meanwhile, Greenspoon is advancing traceability and sustainable sourcing through its digital marketplace. Together, these examples highlight how innovation, investment, and expertise are shaping competitive, climate-smart value chains for both regional and global markets. In many ways, the Netherlands has showcased what is possible when policy, private capital and technical expertise align.
Beyond partnerships, the discussion also highlighted the need for a fundamental shift in how agriculture is financed. Peter Ng'eno; Executive Head, Client Coverage & Business Development – KCB Bank shared how, for decades, agriculture has been viewed as a high-risk sector, often excluded from mainstream lending. Yet, the issue is not the presence of risk, but the way it is structured. There is a growing move towards financing entire value chains rather than individual farmers by linking producers to aggregators, processors and markets under value chain specific bodies. This approach allows financial institutions to mitigate risk through stronger systems and predictable cash flows. Financial products tailored to specific value chains, coupled with insurance mechanisms and blended finance models, will begin to unlock capital at scale. There will be a profound implication when agriculture is structured as a business ecosystem, rather than a fragmented activity, since it becomes investable.
Beeld: Agri Side Event
Closely linked to this, is the role of warehouse receipting systems in formalising agricultural trade. The Kenyan Government has established The Warehouse Receipt System (WRS) Council. A body aimed at regulating and promoting the warehouse receipt system in Kenya. This system enables farmers, traders, and other market players to store their agricultural produce in certified warehouses and receive a warehouse receipt as proof of ownership. These receipts can be used as collateral for loan or traded as negotiable instruments. WRS enables farmers to store produce and access financing against it, these systems address post-harvest losses, price volatility and limited liquidity. More importantly, they create transparency and predictability. These are two elements that are essential for attracting investment into the sector.
Irrigation emerged as another defining theme. A significant portion of Kenya’s land is classified as arid or semi-arid. Reliance on rain-fed agriculture is increasingly untenable. There are only about 700,000 acres currently under irrigation, the potential exceeds 3 million acres. Government-led investments in dams, coupled with growing interest from private investors, signal a shift towards large-scale, climate-resilient production systems. At the same time, innovations such as solar-powered irrigation and pay-as-you-go models are making irrigation more accessible to smallholder farmers, bridging the gap between large infrastructure and grassroots impact.
Productivity alone is not enough. A recurring theme during the discussion was the need to move beyond the export of raw commodities.Global markets are now shifting focus from trading in raw products to delivery of already processed products at source. Kenya continues to export significant volumes of unprocessed tea, coffee and horticultural produce, effectively exporting value and jobs. The push for value addition through processing, manufacturing and industrialisation is gaining momentum. The expansion of fertilizer blending plants, the growth of agro-processing facilities and the diversification strategies of large agribusinesses all point to a sector that is beginning to capture more of its own value.
Equally important is the role of young people in agriculture. There is a growing recognition that the future of the sector depends on its ability to attract and retain youth. This requires a fundamental shift in perception, from agriculture as subsistence to agriculture as enterprise. Initiatives that support refinement of academic curriculum that links and contributes to the quality of young people joining the industry, should promote innovation and demonstrate the profitability of agricultural value chains.
Sustainability, too, is being redefined. What was once viewed as a compliance requirement is increasingly seen as a driver of efficiency and profitability. Example shared By Wayne -Cook; Managing Director - Delmonte during the panel on how Delmonte had to deal with a lot of green waste after processing. The company has now transitioned to considering this waste as byproducts where they are producing fibre, energy, to developing biofertilizers for their farm. This illustrates the potential of circular approaches. These models not only reduce environmental impact but also create new revenue streams, reinforcing the idea that sustainability and business performance are not mutually exclusive.
As innovation advances, the conversation around seed systems underscored the importance of balance. The need for high-yield, climate-resilient seeds is clear, particularly in the face of shrinking arable land and growing food demand. At the same time, there is a strong drive to preserve traditional seed systems and indigenous knowledge. The path forward lies in integrating both by leveraging modern science while safeguarding biodiversity and heritage.
Trade and logistics, was also a major topic during the session .Lilian Mwai; Country Leader – Trademark Africa, noted that significant gains have been made in reducing the time and cost of moving goods, yet logistics remains a critical determinant of competitiveness. As Kenya positions itself within the African Continental Free Trade Area, the opportunity to serve as a regional hub for aggregation, processing and export becomes increasingly tangible. However, this will require continued investment in infrastructure, harmonisation of standards, non-tarrif barriers, and closer collaboration across borders.
For Kenya, the opportunity is clear. The right mix of policy, partnerships and private sector engagement will be important for the country to position itself as a leader in climate-smart agriculture. The task now is to sustain momentum, since the decisions made today will shape policy outcomes and the lived realities of millions of farmers, entrepreneurs and communities across the country. The question is no longer whether transformation is possible, but it is how Kenya will seize this moment to act and lead.